Do You Reflect Your Residents' Values?

According to the Conscious Consumer Report from BBMG, consumer prefer to buy from companies that reflect their own values ... amazing stuff, I know.

Almost 90% of Americans say the words "conscious consumer" describe them well, and they are more likely to buy (if price and quality are equal) from companies that:
• Manufacture energy efficient products
• Promote health and safety benefits
• Support fair labor and trade practices
• Commit to environmentally-friendly practices
One BBMG partner says, "... conscious consumers expect companies to do more than make eco-friendly claims. They demand transparency and accountability across every level of business practice... "

Americans readily self-identify as: "conscious consumers", "socially responsible", "environmentally-friendly", and "green".

While price and quality are still paramount (and I'd add location in multifamily housing), convenience has been edged out by more socially relevant attributes ... how energy efficient a product is and its health benefits are becoming integral to consumers' purchasing decisions.

Jeffrey Pollock of Global Strategy Group sums it up: "Americans think before they buy... they tend to prefer to buy from companies that reflect their values."

What are you doing to reach, inspire and motivate values-driven residents? Do you start with the design of your community? Are you incorporating values and values-based design into your marketing plans?

Fast Stat: They're Into Tech More Than You Think

Don't think your residents are a tech-savvy crowd? Check this out:

88% of men and 82% of women describe themselves as being interested in consumer electronics products, according to market research conducted by the Consumer Electronics Association.

Source: CEA, "The Truth About Women and Consumer Electronics," July 2007.

Dallas in Review: Emerging Technologies

Day Two of last week's Apartment Technology Conference started with a packed room anxious to hear about "Emerging Technologies."

Web 2.0:
Mike Mueller of VaultWare focused on the sharing and collaboration opportunities presented by 'Web 2.0' sites -- such as Facebook -- and SMS text messages. (Personally, I think Facebook and now Google's OpenSocial are huge opportunities for the apartment owners who get them right...)

Mike talked about viral marketing and the importance of making your online marketing interesting and easy to share. As an example, he used the most popular landlord in the world -- Pearl from FunnyorDie:



Pearl is a viral success ... Over 48 million people have met her in the last seven months!

There are all kinds of places online where your apartments should be listed: MySpace, Craigslist, Facebook, Google Maps, Google Earth, ApartmentRatings.com and so on. Mike asked the question: Is your apartment on Web 2.0? I'll take it a step further: Are you controlling the conversation about your community? In addition to these websites, a property blog gives you a great place to drive all of that traffic and show prospects what your community is all about.

IPTV
Steve Winn of RealPage talked up his company's latest offer: IPTV. Steve calls it a "potentially disruptive technology," especially considering the fact that the average consumer spends over 27 hours per week watching TV.

Already available throughout Europe, IPTV presents the possibility to offer some completely new services: converged platforms, place-shifting, and two-way TV for gaming and video conferencing. Steve made the point that residents don’t go to the property portal online, so IPTV could be used to integrate community services into the TV channel guide.

The RealPage IPTV solution looks promising, but it will be interesting to see if gains any traction in a multi-provider environment. Steve did note that bandwidth needs are inevitably going to grow, and many existing networks will not support the bandwidth necessary for tomorrow's services.

Dynamic Bandwidth:
Dave Daugherty of Korcett talked about the need not only for more bandwidth, but also for better bandwidth management to improve network performance. Money quote: "Kids don’t practice safe Internet."

Dave's company enables service providers to offer dynamic bandwidth services and give residents online tools to edit their account and handle their own issues. Residents can turn services up or down as you need to, and property staff can utilize a private messaging platform that's built into the system (ex: “Pay your rent now.”).

Korcett's next plans are to extend messaging to campus-wide events via email or text messaging, and also to enable more two-way communication opportunities between residents and staff.

In the panel Q&A, property infrastructure became a clear concern. Steve encourages a flexible network that enables expandable bandwidth needed as technologies evolve. Wi-Fi is also a requirement, as residents don’t want to be tethered to a desk. Dave would like to eventually see "dynamic provisioning" of service providers, and Mike pleaded for property managers to make it easier for residents to find properties and interface with staff.

Final Thoughts:
I'm a software and 'Web 2.0' guy, but I think that there's way too much focus on software as the savior. In an industry that is focused on building community and increasing resident retention, it's counter-productive to focus entirely on TV and Internet services that keep residents cramped in front of a screen in their units.

While these guys are all clearly experts in their fields, it's disappointing that an hour-long talk about 'emerging technologies' didn't offer a single mention of any opportunities to incorporate technology throughout the common areas of a community … and maybe more surprising, there wasn't any mention of sustainable technologies.

What are some unique 'emerging technologies' that you've seen recently in apartment communities?

FCC Bans Exclusive Deals, Considers Other Restrictions

In an effort to "foster greater competition," the FCC has adopted an Order that bans the use of exclusivity clauses between cable operators and apartment communities and other real estate developments, including existing agreements.

They are also considering taking similar action to prohibit exclusive agreements with satellite providers, private cable operators, and other video providers. They want to ax exclusive marketing and bulk billing arrangements, too (which could create a real mess in student housing communities). The goal is to "increase choice and competition" for residents in these communities.

As expected, the NMHC and NAA have come out in oppostion to the ruling (PDF), claiming that the decision "does not enhance tenant choice and will not result in lower prices."

This is an extremely complex, politically charged issue -- and I don't think that anyone is really being honest about the true state of the marketplace in this one.

While there are certainly some bad deals out there that are not in the best interest of the consumer, there are also a number of property owners that have negotiated incredible discounts on premium video services, as well as higher levels of customer service from their providers.

What now?
The coverage surrounding this ruling backs property owners into a corner. Now residents will expect to be able to choose whichever provider they like -- you may want to prep your property staff with some prepared responses to resident questions.

In new construction projects, most of the costs associated with the infrastructure needed for multiple providers will likely be assumed by the developer, which could lead to higher rents or a conscious decision to leave some wiring out of the budget. Existing properties will be even more difficult to upgrade.

Thus far, the Commission and the media have focused this issue on price, but I think the ruling presents a real opportunity for property owners to demand greater innovation from their service providers. If there are three or more providers in a building, the winner will be the one who provides compelling value-added services that are uniquely possible in multifamily communities.

Here's the link (PDF) to the FCC's release explaining their decision. I'll provide a complete roundup of links related to this Order on the Multifamily Technology news feed.

Think Symmetrical: Change the Way You Market Broadband

As usual, the folks over at Parks Associates are on top of things when it comes to the latest trends in consumers' digital habits.

Verizon has announced a new FiOS broadband offering to their East Coast customers -- Internet service that offers 20 Mbps both up and down. The pricing is competitive to existing cable broadband offerings, but it marks the beginning of a shift in how we're going to see broadband services marketed. For years, Internet service providers have promoted fast download speeds, with little emphasis on their upload offering.

Now, based on the current trends in online gaming, unlimited online email and storage, and video and photo sharing, consumers will want fast uploads in addition to fast download speeds. It stands to reason that marketing very responsive upload capabilities could start to become a critical differentiator. Along these lines, Parks has conducted surveys exploring consumers' digital media habits that show "the growth of the media habits that are likely to drive consumers toward a symmetrical broadband service."

Another Parks study from 2006 shows that some consumers would even pay a slight premium for a symmetrical broadband service. Of course, video gamers and "creative computing consumers" (photo and video editors) are the groups with the strongest interest in such a service. The study also found similar trends in consumers' interest in online storage - another applications that would benefit from symmetrical broadband.

As Parks' Kurt Scherf also notes, "Verizon indicates that symmetrical services are going to be applicable far beyond entertainment applications -- they view such services as remote video monitoring and digital health as also important for driving symmetrical broadband. We're keeping an eye on applications like these as well."

Property owners should do the same ... especially considering the new competition for your residents' attention and dollars that will result from next week's FCC ruling.